The Board of Directors have pleasure in presenting the 31st Annual
 Report of the Bank along with the Audited Balance Sheet as on March 31,
 2011 and the Profit and Loss Account for the year ended March 31, 2011.
 
 VIJAYA BANKS PERFORMANCE IN 2010-11
 
 Working Results
 
 Net profit for the year 2010-11 is Rs. 524 crore as compared to Rs. 507
 crore in 2009-10, recording a growth of 3.26%, while the operating
 profit for the year 2010-11 wasRs. 1047 crore as compared to Rs. 1057 crore
 for 2009-10. On the deposit front, average cost of deposits decreased
 from 6.21% in 2009-10 to 5.86% in 2010-11 due to better portfolio
 management.  Yield on advances for 2010-11 (10.25%) is almost similar
 to that of previous year (10.26%).
 
 The trends in financial results of the Bank are highlighted in the
 tables below:
 
                                                     (Rs. in crore)
 
                                                         Annual
 Sl.   Item                             2009-10   2010-11   increase
 No.                                                          (%)
 
 1.  Interest Income                      5201      5844      12.36
 
 2.  Interest Expenditure                 3752      3897       3.87
 
 3.  Net Interest Income (1-2)            1449      1947      34.36
 
 4.  Non-interest income                   680       533    (-21.62)
 
 i.  Profit on sale of investments         283       118    (-58.30)
 
 ii.  Other non-interest income            397       415       4.53
 
 5.Net Total Income (3+4)                 2129      2480      16.49
 
 6.Operating expenses                     1072      1433      33.68
 
 i.  Staff Expenses                        706      1010      43.06
 
 ii.  Other operating expenses             366       423      15.57
 
 7.  Operating profit                     1057      1047     (-0.95)
 
 8.  Operating profit                      774       929    (-20.03) 
 (excl. Treasury profit)
 
 9.  Provisions and Contingencies          550       523     (-4.91)
 
 10.  Net profit                           507       524       3.26
 
 Important Profitability Ratios (%)
 
 SI.  Item                              2009-10      2010-11
 No.
 
 1.  Yield on funds                       7.89         8.03
 
 2.  Cost of funds                        5.69         5.36
 
 3.  Interest spread (1-2)                2.20         2.67
 
 4.  Yield on advances                   10.26        10.25
 
 5.  Cost of deposits                     6.21         5.86
 
 6.  Yield on investments
 
 - excluding Trading Profit               6.67         6.50
 
 - including Trading Profit               7.05         6.97
 
 7.  Other operating expenses to Average  0.56         0.58 
 working funds
 
 8.  Cost-Income Ratio                   50.34        57.79
 
 9.  Establishment cost to average 
 working                                  1.07         1.38 
 funds
 
 Dividend
 
 Taking into consideration the overall profitability position, the Board
 of Directors has recommended a dividend of Rs. 2.50 per Equity Share of
 the face value of Rs. 10/- for the year 2010-11, which works out to Rs.
 137.34 crore including Dividend Tax.
 
 Capital Adequacy
 
 The capital adequacy ratio stood at 13.88% as on 31.03.2011 vis-a-vis
 the Reserve Bank of India norm of 9%. The Tier I capital of the Bank is
 X 4458 crore and Tier II is X 1806 crore.
 
 Branch Network
 
 With the opening of 42 branches during the year 2010-11, the network of
 branches reached the level of 1200, from the level of 1158 during the
 previous fiscal. There were 47 Extension Counters and 2 Satellite
 Offices at the beginning of the year 2010-11. Bank opened 2 Extension
 Counters (EC) during the year taking the total number of ECs and
 Satellite Offices to 51, ie, 49 Extension Counters and 2 Satellite
 Offices.
 
 Deposit Mobilisation
 
 Total deposits of the Bank increased from Rs.61932 crore to RS.73248
 crore, recording an annual growth rate of 18.27%.  CASA deposits
 recorded a 21.33% growth, accounting for 25.25% in aggregate deposits.
 CASA deposit growth was driven by 24.3% growth in SB deposits, to reach
 Rs. 13330 crore during the year.
 
 The average aggregate deposits stood at Rs. 62104 crore during 2010-11,
 compared to Rs. 56702 crore during 2009-10.  The Bank launched V-Platinum
 Current Account Deposit scheme during the year, to improve HNI
 clientele base and to improve corporate deposits.
 
 Credit Expansion
 
 During the year 2010-11, Gross Credit increased from RS. 41,935 crore to
 Rs.49,222 crore, registering a growth of 17.38%.
 
 Infrastructure Finance
 
 Amongst other sectors, Banks lending to Infrastructure stood at RS.
 11,277 crore as at 31st March 2011, accounting for 22.91% of the Gross
 Credit. The Bank actively participated in lending to key Infrastructure
 segments like Power Generation, Roads/Highways, Ports, Airports and
 Educational Institutions. Significant disbursements are also due in the
 financial year 2011-12, against the sanctions already in place. While
 keeping the pace of growth linked to the huge credit needs of
 Infrastructure sector and other core sectors like Industry, Trade and
 Services, the thrust was on building a balanced Credit portfolio.
 
 Considering the requirements of the Civil Contractors of Mumbai
 Metropolitan area, the Bank has introduced a new scheme under the style
 of V-Contract (Mumbai) Scheme to exclusively cater to their credit
 needs based on the commercial practices prevalent in that area.
 
 Retail Credit
 
 Bank continued to accord priority to its Retail Lending Schemes viz.,
 Housing Loan, Education Loan, Jewel Loans etc., in view of the changing
 economic scenario and phenomenal growth of purchasing power of the
 population across all levels especially of the middle income segment.
 
 The Bank has disbursed Rs. 4588 crore under Retail credit during the year
 & the amount outstanding as at March 2011 stood at Rs. 10041 crore. The
 Retail Credit Portfolio accounted for 20.40% of the Banks Gross
 Credit.
 
 The Bank has disbursed Rs. 597 crore under Housing loan, Rs. 129 crore
 under Education loan, Rs. 550 crore under V-Wheels & Rs. 1158 crore under
 Jewel loan schemes during the year & the amount outstanding under
 Housing loan, Education loan, V-Wheels & Jewel Loan schemes, as on 31st
 March 2011, was Rs. 4213 crore, Rs. 603 crore, Rs. 929 crore & Rs. 902 crore
 respectively. The year to year growth in Road Transport Operators is
 157 % and that under Jewel loan segment is 58 %.
 
 The three major Retail Products viz, Vijaya Home Loan Scheme, V-Rent
 scheme and advances against gold jewellery has been comprehensively
 revised to make it more user friendly for availing finance without much
 hassles. Jewel Shoppe has been set up at 10 centers to give boost to
 the Jewel loan segment.
 
 An innovative Retail product namely Vijaya Secured Overdraft scheme
 (VSOD) was introduced by the bank to cater to the financial requirement
 of mainly Micro and Small Enterprises with liberalized terms and
 conditions.
 
 RACPCs are administratively de-linked from Regional Offices and have
 been set up as a separate business entity to enable them to
 aggressively market Retail lending by disposal of proposal
 expeditiously.
 
 Priority Sector Lending
 
 The Bank has been showing significant performance in lending to
 Priority sector over the years. Total Priority Sector advances of the
 bank have increased to X 14671 crore as at the end of March 2011.
 
 Agricultural Finance
 
 Outstanding agriculture:
 
 Direct Agricultural advances of the Bank as at March 2011 stood at Rs.
 3773 crore, as against Rs. 3608 crore as at March 2010, showing an
 increase ofRs. 165 crore, registering a growth rate of 4.57 % over March
 2010. Total Agricultural advances (with 4.50% cap on Indirect Finance
 for agriculture) stood at Rs. 4969 crore.
 
 Disbursements to agriculture:
 
 The Bank has done well with regard to agriculture loan disbursements
 during the year. Under Special Agricultural Credit Plan, the Bank has
 disbursed Rs. 3961 crore during the year 2010-11, as against the target
 of Rs. 6432 crore, which works out to an achievement of 61.58%.
 
 Kisan Credit Card scheme:
 
 During the current year, the bank has issued 21426 Kisan Cards and
 disbursed Rs. 256 crore under the Scheme. The performance comes to 62.61
 % of the target of 29200 Kisan Cards set for the year.The Bank has
 launched ATM enabled Kisan Credit Cards at some select branches for the
 benefit of farmers.
 
 Coverage of new farmers:
 
 During the year, the Bank has financed 69704 new farmers and disbursed
 Rs. 648 crore under various agricultural activities. The average number
 of new farmers financed comes to 131 as against the Government of India
 stipulation of minimum of 100 new farmers per rural and semi urban
 branch.
 
 Financing Micro Small and Medium Enterprises (MSME):
 
 The advances to Micro Small and Medium Enterprises increased to Rs. 6768
 crore as at March 2011 from Rs. 5436 crore as at March 2010, signifying a
 year on year growth of 24.50%. As per the directives of RBI, advances
 under Micro Enterprises has to be 50% of MSE advances as at March
 2011.The Bank has achieved 52% for the year 2010-11. Online
 registration of application and tracking system has been put up (w.e.f.
 24.12.2010) for speedy disposal of proposals under MSE.
 
 Bank has recently introduced a new scheme titled as Vijaya Secured
 Overdraft formulated mainly to cater to the credit needs of entities
 under MSE category under the Priority sector. During the year 2010-11
 the bank has financed Rs. 345 crore under this scheme.
 
 Advances to Weaker Sections:
 
 As at March 2011 ,the outstanding weaker section advances of the Bank
 stood at Rs. 3808 crore, registering a growth of 9.99% over March 2010.
 
 Self Help Groups (SHGs):
 
 During the year 2010-11, the Bank has financed 25774 SHGs and disbursed
 Rs. 248 crore. Cumulatively, the bank has financed 144031 SHGs and
 disbursed Rs. 891 crore, with an outstanding of Rs. 511 crore. Our Bank has
 won the award for highest share of SHG business to overall business
 among commercial banks operating in Kamataka, for the year 2009-10.
 
 Credit to Women beneficiaries:
 
 Advances to Women beneficiaries stood at Rs. 2784 crore as at March 2011
 as against Rs. 2342 crore as at March 2010, showing an increase of Rs. 442
 crore, registering a growth rate of 18.87 %. Against the stipulated
 benchmark level of 5% of net bank credit to women, the Banks
 achievement stood at 6.64 %.
 
 Advances to SC / STs:
 
 Total advances to SC / STs stood at Rs. 807 crore as at March 2011,
 against Rs. 705 crore as at March 2010, showing an increase of Rs. 102
 crore during the year with a growth rate of 14.47 %.
 
 Credit to Minority Communities:
 
 Advances to Minority Communities stood at Rs. 1411 crore as at March
 2011, constituting 9.62 % of total priority sector advances, against
 RBI norm of 15%.
 
 Lending under Govt. Sponsored Schemes:
 
 Implementation of Govt, sponsored schemes receive utmost attention of
 the Bank. The Banks lendings under various Govt, sponsored schemes are
 furnished below:
 
                                                       (Rs. in crore)
 
                                                       Loan amount
 SI.   Target Groups/       No. of                outstanding as at
 No.       Schemes        beneficiaries                March 2011
 
 1.    PMEGP                 12376                         85.89
 
 2.    SGSY                   4557                         29.59
 
 3.    SJSRY                  4237                         28.35
 
 4.    DRI                    3317                          6.13
 
 Visveshvarava Grameena Bank :
 
 Visveshvaraya Grameena Bank (VGB), a Regional Rural Bank established by
 the bank in 1985, has been making good progress. The VGB has a total
 network of 30 branches in Mandya District of Karnataka State. VGB is
 fully CBS compliant with effect from 25.08.2010. As at March 2011, the
 total deposits and advances of the RRB stood at Rs. 242 crore and Rs. 159
 crore respectively. The financials of the VGB have been quite
 encouraging.
 
 Financial Inclusion :
 
 The Bank is implementing Financial Inclusion plan on Pan India Basis to
 cover 377 villages with population above 2000. As against a target of
 75 villages to be covered under Fl the Bank has covered 113 villages in
 Karnataka and Kerala states as on 31.03.2011. It is proposed to cover
 all the remaining villages under FIP well before the scheduled date
 viz., 31st March 2012.
 
 The Bank is also implementing the Electronic Benefit Transfer Scheme
 (EBT) of the Government of Karnataka.  Under MNREGS, 52178 accounts are
 opened and 45028 Smart Cards issued. Similarly 40475 accounts are
 opened and 39187 Smart Cards issued under SSP Scheme.
 
 The Jnana Jyothi Financial Literacy and Credit Counselling Trust has
 been formed jointly with Syndicate Bank under the model scheme of RBI.
 The Trust has already started its centre at Mandya. 2 more centres
 viz., Haveri and Dharwad will be activated soon. The Bank has also
 joined with other Banks and has set up a Karnataka Farmers Resource
 Centre at Bagalkot to reach the rural households more aggressively.
 
 Asset Quality
 
 The Bank continued its focus on maintaining quality assets along with
 thrust on preventing fresh slippages. It initiated and continued to
 emphasize various measures in this direction, including the following:
 
 . Accounts showing signs of stress / likely default in dues are
 identified and treated as Special Watch accounts and are closely
 monitored. Wherever feasible, such assets are restructured, with
 additional need-based credit limits considered in deserving cases, to
 prevent fresh slippages.
 
 . In case of willful defaulters, stringent recovery measures, including
 legal options like Securitisation, Lok Adalats / DRTs, etc., are
 promptly resorted to.
 
 . To facilitate speedy recovery, Vijaya Adalats are regularly
 conducted to settle dues of defaulters amicably.
 
 During the year, Bank could recover Rs. 46.57 crore under 3675 accounts
 by way of such settlements.
 
 The gross Non-Performing Assets of the Bank as on March 2011 worked out
 to 2.56%, while net NPA ratio was 1.52%.  During the year 2010-11, Bank
 could effect total cash recovery of Rs. 659 crore (including interest and
 recovery under written off Accounts) upgraded NPAs amounting to Rs. 332
 crore. Further, the Bank also made provision of Rs. 273 crore for the
 unexpected defaults, apart from having a floating provision of Rs. 213
 crore as on March 31, 2011.  The Provision Coverage Ratio (including
 PWO) as at March 2011 worked out to 63.69%. However, as per RBI letter
 No. DBOD.No. BP.BC.87/21.04.048/2010-11 the Provision Coverage Ratio as
 on 30.09.2010 is 77.95%.
 
 Investment and Fund Management
 
 Total investment portfolio of the Bank increased from X 21107 crore as
 on March 31, 2010 to Rs. 25138 crore as on March 31, 2011. The average
 yield on investments (excluding profit on sale of investments) during
 the year worked out to 6.50% as against 5.79% in 2009-2010. The
 liquidity position of the Bank was generally comfortable throughout the
 year under review. The Bank also complied with CRR/SLR requirements as
 stipulated by Reserve Bank of India consistently during the year.
 
 Implementation of RTGS & NEFT
 
 The Bank joined the Real Time Gross Settlement (RTGS) system on June
 14, 2004 and has been undertaking customer transactions with effect
 from January 12, 2005. The Bank joined the National Electronic Fund
 Transfer (NEFT) scheme with effect from December 7, 2006. NEFT facility
 has been extended to cover all our RTGS enabled branches/Offices.
 
 Risk Management
 
 Bank has implemented the Basel II Standardized Approach with effect
 from March 2009 and the overall Capital Adequacy Ratio as at 31st March
 2011 works out to 13.88% which is above the minimum stipulated norm of
 9%. In order to facilitate smooth and effective transition to the
 advanced approaches, the bank is implementing the Integrated Risk
 Management System (IRMS) project. The Bank has already approached RBI
 seeking approval for adoption of Internal Model Approach (IMA) for
 Market Risk and the Standardized Approach (TSA) for Operational Risk.
 
 Credit Risk
 
 The bank has put in place a comprehensive Credit Risk Management
 Policy, which include aspects such as Risk
 
 rating , Risk Based Pricing, Risk Mitigation Strategies etc.  The
 Banks Credit Risk Management exercise ensures compliance of regulatory
 guidelines with regard to fixation of prudential limits, substantial
 exposure, preferred sector growth strategies, Credit Approval process,
 Loan Review Mechanism etc. During the year, bank took several
 initiatives to improve the External Rating coverage. Banks corporate
 accounts are now covered under the external rating to extent of 80%.
 The bank has also put in place, two dimensional Credit risk rating
 software, procured from CRISIL for conducting Risk rating of all Retail
 and non retail Loans. The Bank conducts Stress test on Credit Risk in
 terms of Stress Test Policy of the Bank.
 
 ALM and Market Risk
 
 ALM and Market Risk of the bank is managed by Asset Liability
 Management Committee (ALCO) and Market Risk Management Committee
 (MRMC). Appropriate tolerance limits have been stipulated for
 mismatches in different time buckets, both for managing liquidity and
 interest rate risks. The bank is preparing daily ALM statements for
 better management of short term liquidity. Contingency funding plan,
 prudential ratios / limits have been set and actual position is
 monitored as a part of Liquidity Risk Management.  Interest Rate Risk
 is measured through Earnings at Risk (EAR) and Duration Gap Analysis
 (DGA). Stress Test on Interest Rate Risk, Liquidity Risk, Forex Risks
 etc are carried out on quarterly basis. Mid-office reports on treasury
 operations are prepared on daily basis.
 
 The VaR Calculation on trading book is being carried out under three
 methods viz Historical Simulation, Variance - Covariance and Monte
 Carlo simulation on daily basis since 1st April 2010. Further, the
 stress testing and back testing of VaR models are being done as per RBI
 guidelines on a monthly basis.
 
 Operational Risk
 
 During the year the bank took number of initiatives to improve the
 operational risk management framework for migrating to The Standardized
 Approach (TSA). Inline with the business Line Mapping Policy, the Bank
 computed the capital charge for operational risk under the Standardised
 approach (TSA) and appraised the position to ORMC/ RMCB/Board of
 Directors. The operational risk losses are reported to the ORMC
 regularly. The Board of Directors also reviewed the operational risk
 loss data for the year 2009-10.  The Bank has constituted a Business
 Continuity Management Committee (BCMC) at the Apex Level and various
 emergency response teams at HO/RO/Branches to oversee implementation
 and management of the Business Continuity and related activities. These
 Committees/ Response Teams met periodically.
 
 Basel-ll Compliance
 
 In order to comply with the Basel 11 norms, the Bank has been carrying
 out parallel run exercise on the capital adequacy calculation in the
 RBI prescribed format, on a quarterly basis and apprising the Board,
 apart from submitting the same to RBI.
 
 Besides, Bank has entered into MOU with all the four rating agencies
 viz. CRISIL, ICRA, CARE and Fitch, for risk rating of its corporate
 clients.
 
 In terms of the Disclosure policy and ICAAP policy, the Bank has
 compiled the requisite information and got it vetted by the Quality
 Assurance Team for disclosure and submission to the Board and Reserve
 Bank of India.
 
 Integrated Risk Management System (IRMS) Project
 
 In order to facilitate smooth and effective transition to the Basel-ll
 compliance, the Bank is implementing the Integrated Risk Management
 System (IRMS). The IRMS Project consists of six solutions, viz., Credit
 Risk Management (CRM), Market Risk Management (MRM), Operational Risk
 Management (ORM), Credit Risk Rating Solution (CRR) (Retail &
 Non-Retail), Asset Liability Management (ALM) and Funds Transfer
 Pricing (FTP) Solution.
 
 International Banking
 
 Banks export credit as at 31.03.2011 stood at Rs. 1078 crore out of
 which the quantum of export credit extended in foreign currency was USD
 22.81 million. As at March 2011, foreign exchange business turnover of
 the Bank stood at Rs. 12854 crore as against Rs. 12530 crore during the
 previous financial year.
 
 The Bank is participating in the Rupee drawing arrangement with six
 leading exchange houses and two non - resident Banks from Middle East.
 Besides, the Bank has extended Speed Remittance facility to UAE
 Exchange Centre LLC and Al Ansari Exchange UAE to enable the NRIs from
 Gulf countries to electronically remit funds to their account with our
 branches any where in India.
 
 In addition to this the Bank has introduced V-Remit Xpress - a web
 based online remittance facility - for the benefit of NRIs residing in
 USA to remit money for the credit of their own account or any other
 persons account either with our bank or with any bank in India.
 
 Merchant Banking & Allied Activities
 
 Bank is a SEBI registered category I Merchant Banker, Bankers to Issue,
 Debenture Trustee and Depository participant. The bank is also
 registered as Self Certified Syndicate Bank for accepting IPO/Rights
 issue applications under Applications Supported by Blocked Amount
 (ASBA).
 
 The bank undertakes Payment Bankers Assignments for payment of
 Interest/Dividend/Refund orders of Corporates.  Bank also offers
 Depository Services to its clients. The Online Trading commenced during
 the current financial year.
 
 Government Business
 
 Among various Government business, Bank is collecting Direct and
 Indirect tax at its 288 branches. The bank has also introduced online
 payment of taxes in all the branches.  153 branches of the bank are
 designated to open Public Provident Fund accounts. Besides, this, all
 the branches are authorised to disburse State Pension/Central pension.
 A separate cell called Centralized Pension Processing Center has been
 set-up in HO for centralized payment of pensions of Central Government
 pensioners.
 
 Cash Management Services, Agency Arrangements with Banks in India:
 
 The bank has tie up arrangement with other banks for payment of their
 Drafts, collection of local cheques with Corporation Bank, Citi Bank,
 HSBC, HDFC, ING Vysya, ICICI, Deutsche Bank and Standard Chartered
 Bank.
 
 Corporate Agency with LIC: Bank has entered into the Corporate Agency
 agreement with LIC of India to cater to the life insurance needs of the
 customers.
 
 Group Insurance Coverage for borrowers: Bank has entered into an
 agreement with M/s Bajaj Allianz Ltd for Group coverage of individual
 borrowers.
 
 Money Transfer Services (Conventional and Online): Bank is a sub-agent
 for money transfer services of MoneyGram and XpressMoney. Bank has
 entered into a tie-up with Times of Money Ltd for online transfer of
 funds (Remit2lndia) as an additional service to NRIs.
 
 Tie-up with Payment Gateways: Bank has entered into tie-up with Times
 of Money Ltd for our Internet Banking Customers for Online payment of
 goods and services purchased/availed. Besides, the Bank also has tie-up
 with other Payment Gateways namely Bill Desk, C C Avenue and Tech
 Process Solutions Ltd.
 
 Tie-ups for Vehicle Loans: Bank has tied up with M/s Toyota Motors Ltd,
 M/s Tata Motors Ltd, M/s Ashok Leyland Ltd, M/s Mahindra and Mahindra
 Ltd and M/s Hyundai Motors Ltd to extend vehicle loans for personal
 use.
 
 Credit Card Business
 
 The billing has been centralized at Card Division with Credit Card
 billing being debited from Card Division, Head Office.  At the end of
 the financial year, the total card issued by the bank stood at 148978.
 As on 31.03.2011, the Credit Card turn over is Rs. 43194 crore as against
 the turnover of Rs. 44174 crore as on 31.03.2010.
 
 The total number of merchants enrolled by the bank for the year stood
 at 1203 as against 1098 merchants as on 31.03.2010. The bank makes
 direct payments to merchants maintaining account at our Core Banking
 branches. For few other merchants maintaining accounts with other
 banks, NEFT of Reserve Bank of India is utilized for payment.
 
 Debit Card
 
 There has been good increase in the issue of Debit Cards.  We have
 totally issued 15.21 lakh Debit/ATM cards as on March 31, 2011 as
 compared to 11.35 lakh cards issued during the financial year as on
 March 31, 2010. The Debit Card turnover was Rs. 169.80 crore as against Rs.
 95 crore as on March 31, 2010.
 
 To provide prompt & better customer service, V-lnstant Debit Cards have
 been launched wherein the customer will get Debit Card immediately on
 opening of the account.
 
 Marketing Setup
 
 Marketing Cell at the Banks Head Office is actively engaged in
 designing new products, conducting marketing campaigns in potential
 areas to popularize our retail products, reviewing and fine tuning
 existing products, taking measures to strengthen CASA base, designing
 pamphlets/posters/ brochures/ mailers for marketing activities,
 percolating the perceptions of the Top Management to grass root level,
 conducting workshops on products and services of the bank and creating
 awareness on technology-backed Alternate Delivery Channels services
 offered by the Bank like V-Net Banking, RTGS/NEFT, V-Mobile Banking and
 SMS Alerts.
 
 In order to nurture the account holders in the new generation segment,
 V-GenUTH SB Account and the niche segment V- Platinum SB account
 holders, a number of initiatives were under taken. V-GenUTH SB account
 holders maintaining balance of Rs. 25,000 and above were offered Blue
 colored School bags with the V-GenUTH logo. V-GenUTH Drawing
 Competition was held across the country for school children with
 attractive prizes. V-GenUTH Hungama event for children were conducted
 by all Regions in apartment complexes to popularize the product. The
 25th V-GenUTH Quiz Contest for High School children of Karnataka State
 
 was held at Bangalore. The highly popular Quiz Contest has become an
 iconic calendar event, associated with V-GenUTH SB and V-GenUTH Unnati
 RD products for the generation next.
 
 To nurture the V-Platinum SB account segment, account holders were
 offered laptop bags, Gift packs of 4 Audio CDs, and complimentary
 cinema tickets for two, depending upon the balance. In addition to
 this, the young section in this segment in the age group of 20 to 30
 years was offered Wildrcraft laptop bags. V-Platinum Current account
 holders were offered Divine Cards for viewing live proceedings in
 places of worship in India.
 
 Publicity and Public Relations
 
 During the Financial Year 2010-11, the bank carried out several major
 advertisement campaigns in print media in English, Hindi and regional
 languages throughout the country to enhance the visibility of the bank
 and its products.  The bank has also carried out a corporate / product
 advertisement campaign in Radio Mirchi in its 32 stations during the
 World Cup Cricket. Simultaneously, the Bank is also continuing the
 outdoor publicity projects aimed at achieving heightened visibility
 through displays at Railway stations and bus stands and hoardings at
 prominent public places, highways and airport roads.
 
 Customer Service and Redressal of Complaints
 
 There is a well defined Grievances Redressal Mechanism in the Bank and
 efforts are made to resolve the complaints within the time frame.
 Customer complaints are resolved completely to the satisfaction of
 customers. The Bank has constituted Customer Service Committees at
 branch level and Standing Committee of Customer Service at HO level,
 which includes representative from the customers. These Committees meet
 periodically to evaluate and monitor customer service and address
 deficiencies. Customer Service Committee of the Board is also reviewing
 customer service on quarterly basis.
 
 Banking Codes and Standards Board of India (BCSBI)
 
 Bank, being a member of BCSBI has adopted the voluntary Codes
 formulated by BCSBI i.e. (i) Code of Banks Commitment to Customers
 (ii) Code of Banks Commitment to Micro and Small Enterprises. Bank
 has formulated and complied with several policies as per the guidelines
 of BCSBI. A session on customer service incorporating the provisions of
 the Codes has been included in the staff general banking training
 programmes in order to comply with the Codes in true letter and spirit.
 
 Information Technology
 
 The Bank has implemented Integrated Human Resources Management System
 (HRMS), Integrated Treasury Management system (ITMS), and Integrated
 Risk Management solution (IRMS). ITMS and HRMS have been
 operationalised and integrated with the Core Banking System. All major
 modules of these projects are live now.
 
 Core Banking Solution (CBS):
 
 The bank has implemented Core Banking Solution at all the branches with
 centralized database as on 28th March 2009 and covered 99.98% business
 with pending implementation of JND module. The present status of the
 branches/offices under CBS is here under:
 
 CBS status as on 31.03.2011
 
 CBS-Branches                                        1200
 
 Extension counters in CBS                             44
 
 Offices including service branches                   105
 
 Total                                               1349
 
 The data centre of the bank is located at Head Office Building
 Bangalore and Disaster Recovery Centre (DRC) has been set-up at Mumbai.
 
 Alternative Delivery Channels
 
 In order to ensure that technology driven Alternate Delivery Channels
 are utilized to the mutual advantage of the customers and the Bank,
 Marketing Cell has undertaken a number of activities. Mailers were sent
 to customers highlighting the advantages of using Alternate delivery
 Channels like internet banking, use of Debit Card, on-line purchases,
 funds transfer through RTGS/NEFT etc. In all the training programmes of
 the Staff College, one session on Alternate Delivery Channel is
 conducted for the benefit of the frontline staff. In order to ensure
 that these facilities percolate to the customer, staff members are
 being familiarized with these channels through workshops.
 
 SMS Alerts:
 
 As part of our continuous efforts to provide speedy and efficient
 technology based service for the benefit of our customers, Bank
 introduced in July 2009 SMS/e-mail alerts for financial transactions
 through finacle. As on 31.03.2011 there were 693726 registered users.
 
 V-Mobile
 
 Launched in September 2009, the product offers balance enquiry, mini
 statements, funds transfer, bill payment, mobile currency charging
 facilities etc. As on 31.03.2011 there were 22545 registered users
 across 21 Regions.
 
 Internet Banking
 
 V-Net Banking, the Internet banking module of the Bank, facilitates
 features like online funds transfer to other Banks through NEFT/RTGS,
 Online Registration of beneficiary, availability of latest challan
 formats for remittance of service tax, Central Excise etc in addition
 to the earlier facilities like balance enquiry, account statement,
 intra bank fund transfer, transaction related SMS alerts, payment of
 indirect taxes, direct taxes and utility bill payments etc. With all
 the branches working on Core Banking platform, all customers of the
 Bank can avail this facility with the convenience of accessing and
 transacting in their account from any location at any time through
 Internet. The Bank has initiated steps to implement two-factor
 authentication (2FA) for internet transactions. So far, 68575 retail
 clients and 8477 corporate clients are enrolled under the V-Net banking
 module.
 
 ATMs
 
 110 more ATMs were operationalised during the year 2010-11, taking the
 number of ATMs to 545 as at the end of March 2011. Banks customers
 have now access to over 70000 ATMs connected under National financial
 Switch (NFS) across the country.
 
 Cheque Truncation system
 
 As directed by the Reserve Bank of India, the Bank has implemented
 cheque truncation system in NCR of Delhi.  Reserve Bank of India (RBI)
 has mandated National Payments Corporation of India (NPCI) to
 operationalise CTS in Chennai by March 2011. As per the roadmap of
 NPCI, Grid Clearing with Chennai as the hub has been envisaged for the
 States of Tamil Nadu, Karnataka and Kerala covering 18 centres. In the
 initial phase, CTS will be operationalised in Chennai by April 2011.
 Vijaya Bank is also ready to participate in CTS as and when live
 operations are started.
 
 Human Resources Management
 
 Manpower & Staff Productivity :
 
 The total staff strength of the Bank stood at 11,415 in March 2011 as
 compared to 11,565 in March 2010. Of the total staff, 5,048 are
 Officers, 3,904 Clerical Staff, 2,127 Sub- staff, and 336 Part-time
 Employees in the subordinate cadre. The number of women employees as at
 the end of March 2011 stood at 2,346 consisting of 890 Officers and
 1,456 Award Staff constituting 20.55 % of total employees in the Bank.
 As at the end of March 2011 there were 203 employees belonging to
 Handicapped Category and 576 employees belonging to Ex-Servicemen
 Category.
 
 Business per employee as of March 2011 is Rs. 11.05 crore against X 9.30
 crore for the financial year ending March 2010.
 
 Recruitment:
 
 During the year the Bank has appointed 590 Probationary Clerks. Bank
 has also appointed 47 Part Time Sweepers in 1/3rd Scale wages. The Bank
 has initiated the process of recruitment of 893 officers in different
 grades/scales, through direct recruitment mode as well as through
 campus recruitment mode.
 
 In addition to the above the bank had also conducted Campus Recruitment
 Exercise to recruit newly qualified Chartered Accountants. Bank has
 initiated the process of appointing 235 Peons. Bank is in the process
 of appointing another 250 Part Time Sweeper in 1/3rd scale wages.
 
 Promotions
 
 The promotions effected during the year 2010-11 are furnished
 hereunder:
 
 SI.  Promotion from        Promotion to                 Total
 No.                                                    promoted
 
 1    TEGS-VI                 TEGS-VII                      9
 
 2    SMGS-V                  TEGS-VI                      18
 
 3    SMGS-IV                 SMGS-V                       40
 
 4    MMGS-III                SMGS-IV                     142
 
 5    MMGS-II                 MMGS-III                    269
 
 6    JMGS-I                  MMGS-II                     395
 
 7    Clerical                JMGS-I                      233
 
 Training :
 
 The training system in the Bank has been strengthened by providing
 additional competent manpower and increasing the budgetary allocation.
 The courses have beer redesigned keeping in mind the essential inputs
 requirec for the employees to effectively handle the present & future
 assignments and to perform their duties and responsibilities
 effectively in the highly competitive tech-based customer driven
 banking environment. The Bank is also impartinc training to its
 employees through some reputed externa training institutions in certain
 specialized areas like Treasury Management, Risk Management, FOREX, HR,
 Marketing, etc. During the last financial year the Bank has imparted
 training to 6,777 employees constituting 59.40 % of the total
 employees. Out of which, 6,175 employees had undergone training in the
 Banks own establishments and 602 were trained at the reputed external
 training institutions including some overseas institutions.
 
 SC/ST Employees :
 
 Out of the total manpower of 11,415 as at the end of March 2011, 1,724
 employees belong to SC category and 605 to ST category. A separate Cell
 for SC/ST has been created in Personnel Dept, HO to look into the
 matters pertaining to the SC/ST employees and also to supervise prompt
 implementation of Government of India guidelines in service matters in
 respect of SCs/STs. SC/ST Cells are functioning in all the Regional
 Offices as well. Each Cell has a designated liaison officer to attend
 to the grievances of the SC/ST employees. At the Head Office, one of
 the officers in Top Executive Cadre has been designated as the Chief
 Liaison Officer for SC/ST employees in the Bank and he is being
 assisted by a separate Cell consisting of senior officials. The Chief
 Liaison Officer is involved in all the policy decisions concerning
 SC/ST employees. Besides, quarterly meetings are being held between
 representatives of SC/ ST employees welfare association and the
 management.  Relationship between the Bank and SC/ST employees
 association continues to be cordial. The Bank is arranging
 pre-recruitment/ pre-promotion training for SCs/STs regularly.
 
 Further, the Bank has designated one General Manager as Chief Liaison
 Officer to attend to the grievances of OBC and Minority Community
 Employees. Our Bank is complying with all the Policy Guidelines laid
 down by the Govt, of India pertaining to reservation of posts for SC/ST
 employees, OBC & Minority employees including Persons with Disability.
 
 Staff Relation :
 
 The pro-active and humanistic approach undertaken by the Bank has
 yielded positive results and the Bank is showing progressive growth
 consistently with the collective efforts of the management and
 employees of the Bank. The climate is positive and the same is echoed
 in the form of exponential growth of the Bank during the financial year
 ending March 2011. The industrial relations in the Bank have been
 cordial and harmonious. There was no agitation or unrest during the
 year by the employees relating to issues pertaining to our Bank. The
 consultative committee meetings and negotiating committee meetings were
 held with the representatives of the recognized unions at regular
 intervals to sort out the grievances of the employees and settle the
 disputes, if any, amicably and the said meetings are attended by the
 top executives of the Bank.
 
 Sports Activities :
 
 During the year under reference, Bank continued to accord emphasis on
 promotion of Sports and Sports personalities on its rolls. Several
 sports personnel of the Bank participated in the various events and won
 prizes during the year.
 
 BASKETBALL:
 
 Our Basketball team participated and won the Karnataka State Senior
 Division League Championship & Mahindra NBA League Championship held in
 Bangalore during September-October 2010. Sri. Sanjay Raj and Sri.
 Srinivas Naik have represented Karnataka State for the National
 basketball Championship held at New Delhi during January 2011. Sri
 Srinivasa Gowda, Sri Basavaraj & Sri Srinivasa Naik have represented
 the Karnataka State in the National Games held at Ranchi during
 February 2011.
 
 CRICKET:
 
 Sri. R. Vinay Kumar has represented the Indian Cricket Team for the
 T-20 world Championship 2010-11 held in the West Indies. He has also
 been nominated as captain of the Karnataka State team for Ranji Trophy.
 Sri. C.M.Goutham and Sri. S.I. Akshay have represented the Karnataka
 State for Buchi Babu Tournament held at Chennai. Sri. R. Vinay Kumar
 and Sri. CM. Goutham have also represented the South Zone team for the
 Duleep trophy and Deodhar trophy championships 2010-11.
 
 KABADDI :
 
 Our Kabaddi Team participated in the Karnataka State level tournament
 held at Bangalore and won the Title. Sri.  K Manoj, member of our
 Kabaddi team has been selected to attend the National Kabaddi Coaching
 Camp held at SAI Sports Complex, Sonipet during October 2010.
 
 WEIGHT LIFTING:
 
 Sri. S. Prakasha, member of our weight lifting team, working at our
 Vanivilas Road Branch, Bangalore as Asst. Manager, participated and
 secured second place [silver medal- in 77kg weight class] in the state
 weight lifting championship held in Puttur, Dakshin Karnataka.
 
 Staff welfare measures :
 
 The Bank is having various staff welfare schemes such as Canteen
 Subsidy, Conveyance expenses reimbursement,
 
 Annual Health Check up, Health Clinic at HO, Annual Medical Aid to the
 employees retired on superannuation, Newspaper reimbursement, Grant of
 Silver Jubilee awards, House Rent Reimbursement, Holiday Homes at
 Bangalore, Mysore, Ooty, Delhi & Mumbai, etc.,
 
 The Bank is having a separate Staff Welfare Fund Trust with an
 objective to provide welfare facilities to the employees and their
 dependents viz., Awarding scholarships to the wards of the employees,
 reimbursement of residual claim of hospitalization expenses,
 reimbursement of cost of spectacles, funeral expenses to the dependents
 of the deceased employee and incentive to the employees who retire from
 the services of the bank on attaining the age of superannuation etc.,
 
 The bank is also administering Family Welfare Scheme under which
 amounts collected from the members of scheme are distributed among the
 family members (nominees) of deceased employees.
 
 Human Resources Management System :
 
 With a view to streamline the process of faster decision making and
 enable error-free data management pertaining to the employees at a
 centralized location at Head Office, the Bank has implemented HRMS
 (Peoplesoft) Software.
 
 Housekeeping
 
 Reconciliation with regard to all inter bank transactions have been
 drawn upto 31.03.2011. As against the Reserve Bank of India Benchmark
 of six months for reconciliation of outstanding inter branch entries,
 our present status is 3 months. All outstanding entries under different
 sensitive accounts are being followed up promptly. Except entries
 relating to pending court cases, all other long outstanding entries
 have been eliminated.
 
 Internal Inspection
 
 The Bank has put in place a well-defined Audit policy. The Audit
 Committee of the Board oversees the performance of audit functions on a
 regular basis, providing guidance and directions for improvement in the
 audit system and internal controls in the Bank.
 
 The Bank conducts regularly Risk Based Internal Audit.  The Bank has
 conducted Risk Based Internal Audit of 777 branches out of the 777
 programmed branches.
 
 In addition, inspection of 38 Forex Branches, 12 Service Branches, 29
 Currency Chests, 10 Regional Offices and 9 Head Office Departments were
 conducted during the year.  Branches are also subjected to IS Audit in
 accordance with the IS Audit Policy.
 
 Bank has covered 77.31% of its business under Concurrent Audit by
 external firms of Chartered Accountants whereas 16 branches were
 subjected to Concurrent Audit by our Internal Inspectors (viz., Total
 271 including 5 H.O. Departments). Bank is making use of Information
 Technology in its audit system including Automation in Risk Based
 Internal Audit System (RBIA).
 
 KNOW YOUR CUSTOMER (KYC). ANTI MONEY LAUNDERING (AMD AND COMBATING OF
 FINANCING OF TERRORISM (CFT)
 
 Bank has a Policy on Know Your Customer, Anti Money Laundering and
 Combating of Financing of Terrorism. It is being overseen by the KYC
 Cell constituted at H.O. and at Regional Offices by a designated Nodal
 Officer. The policy Guidelines was first issued in 2005 and is being
 updated from time to time.
 
 KYC compliance for old accounts was achieved in April 2010. The ongoing
 implementation of KYC Norms and AML guidelines are being checked by the
 Internal Inspectors and Concurrent Auditors, Vigilance inspectors and
 Executives on their Branch visit. The Nodal Officer overlooks to the
 implementation of the KYC norms at the branches and submits a monthly
 certificate confirming implementation of KYC Norms. The top Management
 is being informed of the developments periodically.
 
 Now a System support is also available to know the level of KYC Norms
 of any account whenever a new cheque book is applied for.
 
 The necessary changes are made in the Account Opening Forms to collect
 details on KYC Norms, Customer Profile and Risk Categorisation. System
 support is made to check the level of KYC compliance in an account
 before a cheque book is issued to any account.
 
 Implementation of Anti Money Laundering :
 
 A System support, to check the customers names with that in the UN
 list of terrorists and also on the level of KYC compliance in each
 account is made available. As a part of Anti money laundering control
 transactions are being viewed at H.O. through exclusive AMLock
 Software. System support is also available, whenever a new account is
 opened, to get the name checked with the UN List of Terrorists and
 entities.  Monitoring of large value transactions, generation of; Cash
 Transaction Reports on cash transactions of Rs. Ten lakhs and above,
 Suspicious Transaction Reports and Counterfeit Currency Reports are
 being carried out through the AMLock software.
 
 The branches and the currency chests are instructed to inform to the
 KYC Celi and submit Counterfeit Currency Reports as and when it is
 found. Based on the information a CCR is generated at H.O. through the
 System and is being submitted to FIU-IND.
 
 The Staff and Officers are being imparted the training on KYC, AML and
 CFT at the Staff Training College.
 
 Vigilance
 
 The Vigilance Department at Head Office is headed by Chief Vigilance
 Officer of the rank of Chief General Manager who is on deputation from
 State Bank of Hyderabad. The Fraud Prevention & Monitoring Cell is also
 functioning under the Vigilance Department. The Vigilance Department
 overseas all vigilance functions of the Bank as per the guidelines of
 Central Vigilance Commission. Cases of frauds involving Rs. 1 lakh &
 above are placed before the Board of Directors, reports forwarded to
 RBI as and when frauds are detected and reported. The Audit Committee
 of the Board is also apprised of frauds of Rs. 1 lakh & above on
 quarterly basis. In compliance with RBI guidelines, a Special Committee
 of the Board is constituted to review large value frauds involving Rs. 1
 crore & above. After studying modus operandi of frauds detected, Bank
 issues suitable instructions to the field functionaries as a preventive
 Vigilance measure. In addition, Vigilance Department carries out
 surprise inspection of branches, concentrating on preventive vigilance.
 These are done by Field Vigilance Officers stationed at Regional
 Offices. All efforts are made to plug the loopholes in the exiting
 system to prevent recurrence of similar frauds and to strengthen the
 preventive vigilance.
 
 Compliance
 
 Board approved Compliance Policy is a requirement under the extant RBI
 guidelines and accordingly, the Bank has adopted Compliance Policy. The
 Compliance Department, H.O. ensures compliance with various
 communications received at Head Office from Govt of India, Reserve Bank
 of India, IBA and others by sending all such communications to the
 concerned operational Departments for necessary action. The compliance
 Department is headed by the Chief Compliance Officer who is of the rank
 of a Deputy General Manager.
 
 Right to Information Act. 2005
 
 Government of India has enacted Right to Information Act, 2005 which
 has come into force on October 12, 2005. The Act provides right to
 every citizen to secure/ access to information under the control of
 Public Authorities, consistent with interest. It aims to promote
 openness, transparency and accountability in administration and in
 relation to matter connected therewith or incidental thereto.
 
 The second line Executive at Regional Office is designated as the
 Public Information Officer and the Regional Head of the Regional Office
 is designated as the Appellate Authority under the Act. At the Head
 Office Deputy General Manager (R&R) is designated as Public Information
 officer and General Manager (R&R) of the Bank as the Appellate
 Authority.
 
 Information sought under the Act is being provided within the
 prescribed time frame. During 2010-11 bank received and disposed of 586
 applications and 47 appeals under the Act.
 
 Security Arrangements
 
 The Bank has a well established Security set-up within the Banks
 organizational structure with clear cut delegation of authority and
 responsibility.
 
 The Department has reviewed and strengthened security arrangements at
 all Currency Chests and Bank branches.  The Regional Security Officers
 carry-out Branch Inspection visits at regular intervals to assess the
 security arrangements in vogue and suggest means for strengthening
 these arrangements. The Regional Security Officers maintain close
 liaison with the law enforcing agencies. The security arrangements in
 the Bank have been geared up to meet the prevailing security scenario.
 
 Bank security is being strengthened to be more effective, modern and an
 unobtrusive Security System. The Access Control System at all Banks
 Currency Chests has been strengthened in terms of RBI guidelines. A
 proper system of regulating access to Currency Chest Strong Rooms and
 proper records of entry into / exit from the Vault Room of the chest is
 being maintained. Biometric access control systems have been installed
 at all currency chest of the Bank to strengthen access control
 measures.
 
 Essential and mandatory security arrangements in terms of RBI/ IBA
 guidelines are provided to almost all branches.  Security Alarm Systems
 are installed at all branches and currency chests. Strong Room
 conforming to RBI specification are provided to 1100 branches.
 
 The Bank has a total of 29 (twenty nine) currency chests.  Police
 guards have been provided to 28 currency chests.  The Bank has
 outsourced round the clock guarding of
 
 Bhubaneshwar Currency Chest to a Private Security Agency sponsored by
 DGR. Efforts are continuing for deployment of Armed Police Guards at
 Bhubaneshwar Currency Chest.
 
 Training including firing practice for Armed Guards deployed at
 currency chests / branches is imparted on an annual basis.  Security
 Committees formed at Regional Offices and at Head Cffice meet
 oenodicaily to review security aspects CCTV Surveillance System have
 been installed at 206 identified vulnerable branches in the first
 phase, keeping in view the threat perception, volume of cash and
 valuables handled and need for continuous surveillance. CCTV systems
 shall be installed at remaining vulnerable branches in a phased manner.
 
 Implementation of Official Language
 
 Bank could achieve Hindi correspondence percentage of 86.61% in area
 A, 90.02% in area B and 64.35% in area C as on 31.03.2011, thanks
 to enterprise-vide initiatives and efforts.
 
 Ten of the Banks Regional Offices conducted Hindi symposium in which
 teachers & students of various Colleges/Universities, customers and
 staff members participated. Special Hindi workshops were conducted for
 124 Bank Executives. Training on Unicode is being imparted in all
 Hindi Workshops as per the recommendation of Parliamentary Committee on
 Official Language. 77 Hindi workshops were conducted for staff members
 in which 1350 staff members were trained. The Bank has a Bilingual
 website which is updated from time-to-time.
 
 The Parliamentary Committee on Official Language (Draft and Evidence
 Committee) had discussions with the Town Official Language
 Implementation Committees (TOLIC) of Coimbatore and Jhansi in which our
 branches participated.  The Third Sub-Committee on Parliamentary
 Committee on Official Language inspected Regional Office, Kochi and
 appreciated the work done by the Bank in progressive use ofO.L. Hindi.
 
 Awards
 
 The Bank has been awarded I prize in Region C in the competition for
 Progressive Use of Hindi under Reserve Bank Rajbhasha Shield Scheme for
 the year 2009-10.
 
 BTM Layout Branch was awarded II Prize under Non-Member Office Category
 and Staff College, Bangalore was awarded II Prize under Training Centre
 Category by TOLIC, Bangalore for effective Implementation of Official
 Language for the year 2009-10. Regional Office, Mangalore was awarded
 II Prize by TOLIC, Mangalore ; Sadashivpet, Pune branch was awarded III
 Prize by TOLIC, Pune ; Regional Office, Hassan was awarded II Prize
 under Public Sector Bank Category by TOLIC, Hassan and Regional Office,
 Delhi was awarded III Prize by TOLIC, Delhi.
 
 The staff members working In Bangaore city participated in the
 Inter-Bank competitions conducted under the aegis of TOLIC. 12
 competitions were conducted, in which our Bank bagged 5 prizes.
 
 Under the Banks Internal Rajbhasha Shield Scheme for the year 2009-10
 Department of Information Technology was awarded I Prize, Staff
 College-Bangalore II Prize and Card Division was awarded III Prize
 under HO Department Category for effective implementation of Official
 Language.  Under Best Region Category Nagpur Region was awarded I
 Prize, Mumbai Region II Prize and Chandigarh Region III Prize.
 
 Corporate Social Responsibility
 
 As a responsible and responsive corporate citizen, Vijaya Bank
 consistently engages itself in community and social investment.
 
 For the cause of promoting education, the Bank contributed Rs. 50,000/-
 to the Malnad Progressive Education Society, Honavar, Uttara Kannada
 District, towards construction of a new building to house its CBSE
 School. The Bank has also contributed towards purchase of sports
 equipment to Govt.  Higher Primary School, Belve, Udupi District.
 
 In a move towards promoting healthcare, the Bank has contributed Rs.
 3,00,000/- to the Sevekshethra Hospital, Bangalore, managed by the
 Canara Bank Relief & Welfare Society towards purchase of 3 Multi
 Parameter Patient Monitor equipment. The Bank has also spent Rs. 30,000/-
 per year to provide free treatment to poor patients by providing bed
 charges and cost of medicines for 2 beds at Nazareth Hospital, Lucknow.
 
 Bank contributed Rs. 20 lakh for the Vijaya Rural Development Foundation
 (VRDF) to conduct various trainings, free health camps, scholarships to
 meritorious students hailing from villages and studying in government
 schools, etc.
 
 Vijava Rural Development Foundation:
 
 Vijaya Rural Development Foundation was promoted by the bank in 1990 at
 Mangalore. During the year, VRDF has conducted 108 training /awareness
 programmes, covering a wide range of subjects, benefiting 6360 persons.
 Free health camps have also been organised for the benefit of rural
 poor. The Foundation has also granted scholarships to poor meritorious
 students hailing from villages and studying in government schools. The
 Foundation has expanded its activities to other districts like Haveri,
 Dharwad and Mandya, where the Bank has Lead Bank Responsibility. Bank
 has granted Rs. 20 lakhs to the Foundation during the current year for
 diversification of activities and expansion of their service to other
 areas.
 
 VIBSETIs (Viiava Bank Self-Employment Training Institutes):
 
 The bank has established a self-employment training institute called
 Vijaya Bank Self Employment Training Institute (VIBSETI) in Mandya on
 1-1-2000. The institute has its own Campus at Mandya with residential
 facilities for the trainees. It has been conducting various vocational
 training / skill-upgradation / awareness programmes and product
 development workshops etc. During the current year, the Institute has
 conducted 60 Programmes involving 475 training days and trained 3267
 beneficiaries, of whom 3142 have settled by setting up own ventures /
 gainful self-employment. The Bank has also established another VIBSETI
 at Haveri, on 1.9.2003. VIBSETI, Haveri, has conducted 73 programmes
 involving 284 training days and trained 2893 candidates, of whom 2584
 have settled down with various gainful self-employment ventures.During
 the current year the Bank has opened one more VIBSETI at Indore, which
 started functioning from 03.02.2011 and conducted one training
 programme during the year benefitting 14 people.
 
 Board Meetings and meetings of other Sub-Committees of the Board During
 the year, 12 Meetings of the Board of Directors, 23 Meetings of the
 Management Committee of the Board, 10 Meetings of the Audit Committee
 of the Board, 4 Meetings of the Directors Promotion committee, 7
 Meetings of the Risk Management Committee of the Board, 5 Meetings of
 the Committee to Review Large Value Frauds of Rs. 1 crore and above, 1
 Meeting of the Remuneration Committee, 1 Meeting of the Nomination
 committee, 5 Meetings of the Customer Service Committee, 4 Meetings of
 the Shareholders/ Investors Grievances Committee, 17 Meetings of the
 Share Transfer Committee, 1 Meeting of the Committee to consider
 appeals preferred by employees against final orders passed by Chairman
 & Managing Director as Disciplinary Authority and 1 Meeting of the
 Share Allotment Committee were held.
 
 Board of Directors
 
 During the year 2010-11, the following changes have taken place in the
 Constitution of Banks Board:
 
 1.  Smt. Suma Varma, was nominated as RBI Director, vice Shri. K
 Venkatappa w.e.f 30.07.2010.
 
 2.  Shri. G B Singh, Government Nominee Director retired from the
 services on attaining his superannuation on 30.09.2010.
 
 3.  Shri. L K Meena has been nominated as Government Nominee Director
 w.e.f. 29.10.2010 vice Shri. G B Singh
 
 4.  Shri. Suresh Kamath has been appointed as Workmen Director vice
 Shri. P Shantharam Shetty w.e.f.  02.11.2010
 
 5.  Shri. Nishank Kumar Jain, Non Official Director ceased to be the
 Director of the Bank w.e.f. 02.01.2011, on completion of his three year
 tenure.
 
 The Banks Board as on 31st March 2011 comprised the following
 Directors :
 
 1. Shri. Albert Tauro, Chairman & Managing Director
 
 2. Smt. Shubhalakshmi Panse, Executive Director
 
 3. Shri. L K Meena, Government Nominee Director
 
 4. Smt. Suma Varma, RBI Nominee Director
 
 5. Shri. Ashok Kumar, I.A.S (Retd.), Shareholder Director
 
 6. Shri. Ashok Kumar Shetty, Shareholder Director
 
 7. Shri. S Ananthan, Shareholder Director
 
 8. Shri. Ranjan Shetty, Officer-employee Director
 
 9. Shri. Sridhar Cherukuri, Non-Official Director
 
 10. Shri. B Ibrahim, Non Official Director
 
 11. Shri. Suresh Kamath, Workmen Employee Director
 
 The Board of Directors placed on record its appreciation of the
 valuable services rendered by Shri. K Venkatappa, Shri. G B Singh,
 Shri. P Shantharam Shetty, and Shri. Nishank Kumar Jain, Directors
 during their respective tenure in the Bank.
 
 Acknowledgement
 
 The Board of Directors place on record their sincere appreciation for
 the excellent support and co-operation extended to the Bank by all
 customers, shareholders, staff members, financial institutions and
 other Banks, the Reserve Bank of India, the State Governments, the
 Securities and Exchange Board of India and the Government of India in
 improving its overall performance during the year 2010-11.
 
                         For and on behalf of the Board of Directors
 
 Head Office, Bangalore                          H.S. Upendra Kamath
 
 Dated the 28th April, 2011             Chairman & Managing Director